** UPDATE 2/12*****

USDA Announced a STREAMLINE refinance Program for homeowners in NC. This program is limited until the end of the year - and has special features. To learn more about the USDA Streamline Loan program - please call us!

If you purchased your home using the USDA Home Loan Program, and your interest rate is currently over 5% - you might be pleased to learn that USDA does allow for the refinance of current USDA Guaranteed or USDA Direct Mortgages.

The USDA Refinance is designed to lower the interest rate on a current USDA Home Loan and is only available in a fixed rate. A USDA Refinance Loan can be performed quickly and easily. USDA Refinance Loans require no property inspection, however you do have to qualify for the new mortgage - meaning that you must have a credit score of at least 620, you can not be late on your mortgage payments, and you must be able to verify your income.

If you do not currently have a USDA Mortgage on your home, you are not eligible for a USDA Refinance and you may want to consider an FHA Refinance, Conventional Refinance or VA Refinance. For an FHA refinance, you will need at least 3.5% equity in your home, Conventional loans can be done with as little as 5% equity.

What are the basic requirements for an USDA Refinance?

• The mortgage to be refinanced must already be a USDA Loan (Guaranteed or Direct).
• The mortgage to be refinanced should be current (not delinquent).
• The refinance is to result in a lowering of the borrower's monthly principal and interest payments.
• No cash may be taken out on mortgages refinanced using the USDA loan refinance process.

Maximum Loan Amount

The is no set maximum loan amount allowed for a USDA Loan. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing

The maximum USDA Rural Loan amount will be 102% of the appraised value of the home (100% plus the 2% USDA loan guarantee fee).

If you want more information about refinancing your USDA Home Loan in NC - So CALL US 919-649-5058, and we'll be glad to go over your options! Steve Thorne Mortgage Banker in Cary NMLS #60596 Equal Housing Lender - We have the best rates and know the ways to make this program work!

The information contained on this website, NCFHAExpert or any other Steve Thorne, NC Mortgage Expert website is for informational purposes only and is not an advertisement for products offered by RCBNA. The views and opinions expressed herein are those of the author and do not reflect the policy or position of RCBNA, its officers, parent, or affiliates.